For a full breakdown of auto coverage, deductible strategy, and cost reduction tactics, see the Auto Insurance hub.
Car insurance is the second-largest insurance expense for most Americans after health insurance, costing an average of $1,800–$2,600/year for full coverage. But rates vary wildly — the same driver can see quotes that differ by $1,000+ between companies.
This guide covers how much car insurance actually costs, what drives your rate, and how to find the cheapest coverage without sacrificing protection.
Average Car Insurance Costs
National Averages by Coverage Level
Coverage Type
Monthly Average
Annual Average
What It Covers
Minimum (liability only)
$50–$75
$600–$900
Damage you cause to others (bodily injury + property)
Full coverage
$150–$220
$1,800–$2,640
Liability + collision + comprehensive
Full + extras
$200–$300
$2,400–$3,600
Full coverage + gap, roadside, rental, umbrella
Average Rates by State (Full Coverage)
State
Annual Average
Monthly Average
vs. National Average
Michigan
$3,000–$3,500
$250–$290
+60–80%
Florida
$2,800–$3,200
$230–$270
+50–60%
Louisiana
$2,600–$3,000
$215–$250
+40–50%
New York
$2,400–$2,800
$200–$230
+25–35%
California
$2,200–$2,500
$183–$208
+15–25%
Texas
$2,000–$2,400
$167–$200
+5–15%
Illinois
$1,800–$2,200
$150–$183
Average
Pennsylvania
$1,600–$2,000
$133–$167
–10–15%
Ohio
$1,400–$1,800
$117–$150
–20–25%
Virginia
$1,400–$1,700
$117–$142
–20–30%
Maine
$1,100–$1,400
$92–$117
–35–45%
Average Rates by Age and Gender
Age Group
Male (Annual)
Female (Annual)
Notes
16–19
$4,500–$7,000
$3,800–$5,500
Highest risk group; consider being added to parent’s policy
20–24
$2,400–$3,800
$2,000–$3,000
Rates drop significantly at 25
25–34
$1,600–$2,200
$1,500–$2,000
Sweet spot — old enough for lower rates, young enough for few claims
35–49
$1,500–$2,000
$1,400–$1,900
Generally the lowest rates
50–64
$1,500–$2,100
$1,400–$2,000
Rates stable, may increase slightly
65–74
$1,600–$2,300
$1,500–$2,100
Slight increase from middle-age rates
75+
$1,900–$2,800
$1,800–$2,600
Higher accident risk = higher rates
Average Rates by Credit Score
Credit Tier
Annual Average (Full Coverage)
vs. Excellent Credit
Excellent (800+)
$1,400–$1,800
Baseline
Good (700–799)
$1,600–$2,100
+15–20%
Fair (600–699)
$2,000–$2,800
+40–55%
Poor (300–599)
$2,800–$4,200
+80–130%
Credit score is one of the biggest factors in most states. Improving your credit from fair to good could save $400–$700/year. California, Hawaii, Massachusetts, and Michigan prohibit or limit use of credit scores for insurance pricing.
How to Get the Cheapest Rate: 15+ Strategies
Immediate Savings (This Week)
Strategy
Potential Savings
Effort
Compare 5+ quotes
20–40%
1–2 hours online
Raise your deductible ($500 → $1,000)
15–25%
5 minutes (call or online)
Bundle auto + renters/home
5–25%
15 minutes
Ask about all discounts (see list below)
5–30% combined
10 minutes (call your insurer)
Drop collision/comprehensive on old cars (worth < $5,000)
30–50%
10 minutes
Switch to paperless + autopay
3–8%
5 minutes
Medium-Term Savings (1–6 Months)
Strategy
Potential Savings
Effort
Improve your credit score
20–50% (over time)
3–12 months
Complete defensive driving course
5–15%
4–8 hours (often online)
Install telematics device/app
5–30% (based on driving behavior)
1 month of tracking
Pay annually instead of monthly
5–10%
Switch payment schedule
Reduce your commute (or switch to pleasure use)
5–15%
If applicable
Long-Term Savings (Ongoing)
Strategy
Potential Savings
Effort
Maintain clean driving record
20–40% vs. drivers with accidents/tickets
Drive carefully always
Re-shop every 12–18 months
10–30%
1–2 hours annually
Choose insurance-friendly car
10–30% vs. sports/luxury cars
Consider at next purchase
Maintain continuous coverage (no gaps)
10–30%
Never let policy lapse
Available Car Insurance Discounts
Discount
Typical Savings
Who Qualifies
Multi-policy (bundle)
5–25%
Auto + home/renters with same company
Multi-car
10–25%
Two+ cars on same policy
Good driver
10–25%
No accidents/violations for 3–5 years
Good student
5–15%
Full-time student with B average or higher
Defensive driving course
5–15%
Complete an approved course
Low mileage
5–15%
Drive under 7,500–10,000 miles/year
Telematics/safe driving
5–30%
Use company’s tracking app/device
Paperless + autopay
3–8%
Enroll in paperless billing and autopay
Paid-in-full
5–10%
Pay the entire annual premium upfront
Military/veteran
5–15%
Active duty, veterans, and families
Federal employee
5–10%
Federal government employees
Anti-theft device
2–10%
Car alarm, GPS tracker, VIN etching
Safety features
3–10%
Airbags, ABS, backup camera, lane assist
Homeowner
3–10%
Homeowners (even without bundling)
Loyalty
3–10%
Multi-year customers (but don’t let loyalty prevent shopping)
Stack your discounts. A driver with good credit, clean record, bundled policy, and autopay could be paying 40–60% less than someone without those advantages.
Cheapest Cars to Insure
Vehicle Type
Annual Insurance (Average)
Why It’s Cheap
Honda CR-V
$1,300–$1,600
High safety ratings, affordable to repair
Toyota RAV4
$1,300–$1,600
Reliable, common parts, good safety
Subaru Outback
$1,300–$1,600
Safe, lower theft rate
Honda Civic
$1,400–$1,700
Common parts, affordable repairs
Toyota Camry
$1,300–$1,600
#1 selling sedan, cheap to repair
Mazda CX-5
$1,300–$1,700
Good safety, affordable repair costs
Jeep Cherokee
$1,400–$1,800
Moderate repair costs
Most Expensive Cars to Insure
Vehicle Type
Annual Insurance (Average)
Why It’s Expensive
Tesla Model S/X
$3,000–$4,500
Expensive repairs, specialized parts
BMW M series
$3,000–$4,200
High performance, expensive parts, theft target
Mercedes AMG series
$3,200–$4,500
Luxury + performance = expensive everything
Dodge Charger/Challenger
$2,500–$3,800
High horsepower, young driver demographic
Maserati (any model)
$3,500–$5,000
Ultra-expensive repairs, low parts availability
How Driving Record Affects Your Rate
Incident
Typical Rate Increase
How Long It Affects Your Rate
At-fault accident (minor, < $2,000)
20–40%
3–5 years
At-fault accident (major, > $2,000)
40–80%
3–5 years
Speeding ticket (1–14 mph over)
10–20%
3 years
Speeding ticket (15–29 mph over)
20–30%
3 years
Speeding ticket (30+ mph over)
30–50%
3–5 years
DUI/DWI
50–150%
5–10 years (varies by state)
Reckless driving
40–80%
3–5 years
Not-at-fault accident
0–10% (depends on state/company)
0–3 years
Comprehensive claim (theft, hail)
0–10%
0–3 years
Coverage Levels Explained
Coverage
What It Pays For
Minimum Required?
Recommended Limit
Bodily injury liability
Other people’s medical bills when you cause an accident
Yes (all states except NH)
$100,000/$300,000
Property damage liability
Other people’s car/property when you cause an accident
Yes
$100,000
Collision
Your car’s repairs after an accident (regardless of fault)
Only if financing/leasing
$500–$1,000 deductible
Comprehensive
Your car for non-accident events (theft, hail, animal, flood)
Only if financing/leasing
$500–$1,000 deductible
Uninsured/underinsured motorist
You, when hit by an uninsured/underinsured driver
Required in many states
Match your BI limits
Medical payments/PIP
Your medical bills regardless of fault
Required in some states
$5,000–$10,000
Gap insurance
Difference between car’s value and what you owe
No
Yes if you owe more than car is worth
When to Drop Collision and Comprehensive
Your Car’s Value
Collision/Comp Annual Cost
Keep or Drop?
$20,000+
$400–$800
Keep — repairs can easily exceed premiums
$10,000–$20,000
$300–$600
Keep — but raise deductible to $1,000
$5,000–$10,000
$250–$500
Consider dropping — you’re paying 5–10% of car’s value
Under $5,000
$200–$400
Drop — you’re paying 8–16% of car’s value in premiums
Minimum Coverage vs. Full Coverage: True Cost Comparison
Scenario
Minimum Coverage
Full Coverage
Your annual premium
$600–$900
$1,800–$2,640
You’re at fault, other driver hospitalized
Your insurance pays (up to your limit)
Your insurance pays (up to your limit)
Your car totaled (at-fault)
You pay full replacement cost
Insurance pays (minus deductible)
Your car stolen
You pay full replacement cost
Insurance pays (minus deductible)
Tree falls on your car
You pay full repair/replacement
Insurance pays (minus deductible)
You cause $400K in injuries (your limit is $50K)
You owe $350K out of pocket
You owe $100K+ out of pocket (higher limits help)
The Bottom Line
The cheapest car insurance comes from comparing multiple quotes, maintaining good credit, stacking discounts, and choosing the right coverage level for your situation. No single company is cheapest for everyone — your personal factors (age, location, driving record, credit) determine which company offers you the best rate.
Spend 1–2 hours comparing 5+ quotes, then re-shop every 12–18 months. This single habit can save you $500–$1,500/year.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
